"The Independents agreed to support the government in the house in return for Peter Slipper's resignation after the vote," she told reporters.

"This is reminiscent of the prime minister's grubby deal to put Peter Slipper into the position of Speaker in the first place."

Mr Slipper dramatically quit last night after admitting to a vile series of text messages about women that he had sent to the former male staffer now accusing him of sexual harassment.

Dressed in his formal robes and fighting back tears, the serial text pest entered the parliament at 7.20pm to announce his resignation after a dramatic day in Parliament and forced apology for his behaviour.

"Despite the vote in the house in support of my continuation in office, I wish to advise with great sadness I have decided that I should not continue as your Speaker," he said.

"I am having arrangements made to tender my resignation to the Governor-General. It is indeed a great privilege to serve in this place and particularly as Speaker."

Peter SlipperSource:News Limited

Sitting on the cross benches, a day after he resigned as Speaker, Mr Slipper this morning supported a Labor move to change the procedure for electing a second deputy speaker.

Standing orders require it be a non-government MP but with the election of National Bruce Scott as deputy speaker Labor was keen to have one of its own - Steve Georganas - elected as second deputy.

Prime Minister Julia Gillard said whatever people may have to say about Mr Slipper, it was clear that the events had an emotional cost on him and his family.

Opposition Leader Tony Abbott admitted that while "his side" had wanted Mr Slipper gone, he had done the honourable thing by resigning his position.

Mr Slipper said he held no malice towards Mr Abbott and described him as a friend.

While admitting to the obscene texts, he said he completely rejected the sexual harassment claims made against him by his former staffer Mr Ashby, which is still before the courts.

"I look forward to being vindicated of the false claims against me," he said after describing the ordeal his family had been through.

Mr Slipper's decision to resign followed Ms Gillard's refusal earlier in the day to buckle to opposition pressure to sack him.

Mr Slipper had earlier issued an apology for a series of text messages about women's genitalia - and several obscene messages about a female Liberal MP.

Slipper's vote key to Government

The Coalition has deemed Mr Slipper's comments on female genitalia in offensive texts messages as less serious than allegations of the misuse of union funds that have been leveled against Mr Thomson.

Labor faces the possibility the Coalition, with its 72 MPs, can reach 75 votes with the support of Bob Katter, Andrew Wilkie and Mr Slipper.

Independent MP Andrew Wilkie, who tore up his deal with the government earlier this year when he was dudded by Prime Minister Julia Gillard on promised poker machine reform, was emerging as a key political player again last night.

After he yesterday sided with the Coalition in an attempt to vote Mr Slipper out of the Speaker's chair prior to his dramatic resignation, Mr Wilkie was scathing of the government.

He said last night the implosion of Mr Slipper's speakership had reflected poorly on a government which he said "had only elevated Peter Slipper to the Speaker's Chair to sideline me."

The episode had damaged the government and it could only blame itself, he said.

Peter SlipperSource:The Daily Telegraph

Mr Katter last night said he was repulsed by the text messages and welcomed Mr Slipper's resignation.

He added: "The Parliament can get on with the job of running the country instead of being distracted by personal matters."

Mr Slipper's decision to quit followed an attempt by the Opposition to force him from the role. That effort failed by just one vote.

He will not resign from Parliament.

Mr Slipper is currently facing sexual harassment claims from a former staffer James Ashby.

A series of text messages revealed to the court this week revealed a litany of obscene texts about female genitalia.